What is Cut-off Price for a Book Issue Building?

During the Book Build process, investors are also given addition choosing option which is called Cut-Off price for bidding. The cut-off price means that the investors are ready to pay the price is decided by the issuer company at the end of the book building procedure.

The investors will then pay the highest price while bidding at a Cut-Off price. If the final price decided by the company is less than the highest price determined for IPO, the difference is refunded to the investors.